• Disinflation is on track, but new shocks are posing new challenges.
  • Tariffs may be disinflationary in the short run but pose upside risks over the medium term.
  • Appreciation of the Euro is historical opportunity to foster the international role of the Euro.

There's nothing new here but I agree that tariffs are disinflationary in the short term given the negative demand shock but it could indeed pose upside risk on inflation going forward especially if you get the reversal in policies like we've seen with Trump and therefore potential pick up in economic activity as uncertainty eases.

ECB's Schnabel
Source: Forex Live